<p><strong>Scenario: </strong><em>"Dude, here's what I do when I find a customer complaining about something we just sold them: 'Yo, you bought it. No refunds, sucka. Yay!'" </em></p> <p>Uh-oh.</p> <p><span class="highlight"><strong>When you create a negative customer experience, you're not only losing that customer -- but you're also losing future sales from that customer's personal network.</strong> </span> It's word-of-mouth -- in a disastrous way; and, it can spread virally -- destroying future sales.</p> <h2>Don't Be Like Most Companies</h2> <p>Too many companies think of the first sale. That is, nothing matters but that customer transaction. So what happens? Long lines. Horrible customer service. Non-existent support. Bad manuals. Yadda. Yadda. Yadda. <span class="highlight">The worst offense: Bad products disguised as good products.</span> The common practice:</p> <ol> <li>Manager Mary: Hey, let's sell this defective computer.</li> <li>Employee Eddie: Yes. Then, we'll slap a no-refund policy on the sucka.</li> <li>Manager Mary: You're genius. Yes! We'll make $$$!</li> </ol> <p>So:</p> <ol> <li>Customer Charlie buys the defective computer.</li> <li>He brings it home.</li> <li>He discovers it's a defective product.</li> <li>He tries to return it.</li> <li>He gets handed the "No returns." policy.</li> </ol> <p>What disaster happens next? Charlie tells his friends. Those friends tell their friends. And, so on. <em>(Worse, Charlie probably posts his negative experience to a popular online message board -- exposing your bad service to way more people.)</em> In a marketing <a href="http://knowledge.wharton.upenn.edu/article.cfm?articleid=1422">study</a> by Wharton's Stephen Hoch:</p> <blockquote><span class="highlight">Almost half those surveyed, 48%, reported they have avoided a store in the past because of someone else's negative experience.</span></blockquote> <h2>Don't Do a Kramer.</h2> <p>You might know what happened with Seinfeld's Kramer: his ugly <a rel="nofollow" href="http://www.tmz.com/2006/11/20/kramers-racist-tirade-caught-on-tape/">rant at The Laugh Factory on Friday</a> that killed his career, forever. Decades of good work -- ruined by one filthy, horrible, disgusting act. <span class="highlight">A fabulous reputation takes years-and-freakin'-years to build -- and you can ruin it by doing something stupid/unethical/immoral.</span> So, when you're out rocking your business like it ain't no thang, stick to this mantra like white on rice: <span class="highlight"><strong>Take the high road, always. Always.</strong></span> Sure, you might mess up; but customers accept apologies for unintentional mess-ups -- as opposed to intentionally-cheating-the-$@!%-out-of-'em. They'll love you for it.</p> <h2>"How do I start? How do I start?!"</h2> <p>We highly encourage it: <span class="highlight"><strong>Have a guarantee policy.</strong></span> That is, display this sucka -- or some derivative of it -- as prominently as you can: <span class="highlight"><em>"If you don't like our stuff, get a full-freakin'-refund. We suck. We sorry."</em></span></p> <h2>Why Backing Your Products Rocks</h2> <p>Having a guarantee policy helps you in three ways:</p> <ol> <li> <h3>You ensure your products fulfill what customers want.</h3> Johnny pays for your $30 widget. If he doesn't ask for a refund, you know you probably fulfilled what he wanted. <span class="highlight">Now if he does ask for one, the guarantee policy viciously drives you to improve your products for the customer -- or you'll lose money on refunds every time.</span></li> <li> <h3>You retain that customer, and the customer's personal network.</h3> <span class="highlight">Johnny won't go on a rampage insulting your company like a mofo, driving away future sales. </span> The guarantee policy ensures -- at the least -- a customer who won't go blabbing about how you suck. (Now, wowing the shizzle out of those products belongs in its own article. We'll write that sucka soon.) </li> <li> <h3>You sell more products.</h3> <span class="highlight">Because you've guaranteed your product rocks -- or they get a full refund, your customers become more confident in your offering.</span> You've removed the biggest their biggest fears: "What if this product sucks?" </li> </ol> <h2>Don't Forget: They Won't Tell You Everything</h2> <p>Remember, you can still have a dissatisfied customer that won't take you up on your guarantee because of the hassle. A simple and sweet method we use: <span class="highlight"><strong>Measuring the number of word-of-mouth customers we get. </strong></span> Customers that love you will tell their friends. If they're not: Uh-oh. But if they are, keep on rockin'.</p> <h2>Like a badass, always build great products like a mutha-$@!$!-white-stallion that you are.</h2> 2006-11-20T18:11:32-08:00 true 403 how-to-destroy-future-product-sales 40 2009-11-06T21:45:44-08:00